One might argue there are just two types of traders on Pocket Option: the ones that gain and the ones that lose. Traders who are not making positive returns often wonder why it is so. Perhaps they are not using the right assets, tools, and strategies? Is the problem in them or does this industry inherently not allow traders to be successful? Is it even possible to ever be successful in trading?
There are certainly many more reasons why some traders are more successful than others and why one could constantly run into losses. Often the root cause of the problem lies in what kind of trader you are.
Let’s have a look at the most common 4 types of traders on Pocket Option and what makes some of them more successful than others.
Many traders start on Pocket Option with the hope of making large profits quickly. They probably will also not spend too much time on the Pocket Option Demo account and invest real funds after only a few successful trades. They believe they understood the platform quickly and the trading process well enough to start risking their capital. They might place positions when there is high volatility and not place the correct risk management tools.
Although the Pocket Option interface is built for the greatest comfort of its users, it is only a small part of trading. One needs to understand how to use many different strategies, what assets are best to trade and using which indicators, practice their timing and risk management techniques. They also need to learn how to monitor and analyze the market and incorporate macro and microeconomic news. All of this knowledge and skills need to be mastered before risking real funds.
These types of traders are the opposite of the unskilled ones and may know too much, however strange that might sound. They are well aware that markets are constantly changing and there is no single strategy that will guarantee absolute success. They may therefore spend much of their time looking for new strategies and trading techniques they can use on Pocket Option. Such traders often join specialized forums or pay for advice from others.
The danger is then, of course, that they spend too much time focusing on discovering new trading ideas and perfecting their strategies rather than trading. There is a high chance they use many different trading indicators on their chart hoping for a more insightful trading signal. This overload of information however often defers them from spotting a clear opportunity and makes the trading process more complicated. It is not uncommon that the most simple trading strategies turn out to be the most successful ones.
Emotional traders are usually the ones who see trading as an opportunity to make large profits quickly. They may often look for fast opportunities or follow other successful traders rather than develop a clear trading plan and strategy for themselves. Due to their impatience, these traders make many mistakes in timing. Although they might start with the right strategy, right assets, and indicators, they rush into placing trades before spending enough time analyzing markets and spotting the right setup. The strategy even may be correct, but it is not timed suitably. They also lack a clear plan and a long-term outlook on how to gradually become a successful trader. They are more likely to take large risks than adopt capital and risk management techniques to protect their funds.
The outcome of such a trading approach is rarely positive. Emotional traders lack rationality in their approach and that is certainly needed to place your positions well. Learning to distance yourself from emotions is a long but certainly needed process.
There is a high chance that successful traders on the platform have gone through a long path of learning, practicing, and making mistakes, probably ones that cost much too. What makes them different from others is their commitment to trading and a rational approach.
It is most likely these types of traders have a trading plan that they have followed, analyzed, and modified according to their trading performance. They have adopted the right risk and capital management techniques as well as learned how to control their emotions to minimize potential losses. Successful traders learn how to control position sizes and slowly increase their accounts by making small but consistent profits. Most likely they also have a selection of their preferred assets, instruments, and time frames to trade. They will dedicate most of their time to analyzing the markets and looking out for the right conditions to create an opportunity to open a trade.
What kind of trader are you?
Can you relate to any of the types of traders discussed above? Then you know what you might be doing wrong and how to act upon.
Trading requires a great degree of patience, practice, and self-analysis. Time spent studying is time well-spent, and even if you feel knowledgeable enough, there is always a place to look at what works and what doesn’t within your strategy. Do not forget to control your emotions. Be consistent in your approach to trading and eventually it will pay off.
Best of luck on Pocket Option!
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.